Make a Major Gift With Ease

Life Insurance

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View My Free Brochure

When you own a life insurance policy with accumulated cash value, you are essentially sitting on a pile of money. When the original purpose for the protection no longer applies—such as to educate children now grown or to provide financial security for a spouse now deceased—your life insurance can be redirected to help support National Society Daughters of the American Revolution.

How It Works

One option is to name NSDAR as the beneficiary and assign us ownership of the policy as a charitable gift.

chart-life-insurance

chart-life-insurance

Another option is to name NSDAR as primary beneficiary while you retain ownership of the policy; however, this does not qualify you for an income tax deduction.

Your Benefits

When you assign us ownership of a life insurance policy and also name us as the beneficiary, good things happen:

  • You receive an income tax charitable deduction, available under most circumstances.
  • You realize tax savings from use of the deduction, and these savings can be invested for future income.
  • You reduce your future estate tax liability.
Did you know?

If you are concerned that supporting our work will reduce your family's inheritance, a new life insurance policy equal to your charitable gift can replace the value of your loved ones' inheritance.

Donating a New Policy

Perhaps you do not own an existing policy but still realize how beneficial giving life insurance can be. If so, you can—in most states—purchase a new insurance policy and name the NSDAR as the beneficiary and owner of the policy. Rather than paying premiums to the insurance company, you make tax-deductible cash gifts to cover the annual premiums. Even greater leverage is possible when two donors, usually spouses, purchase a two-life, second-to-die policy. With two lifetimes before the payment of death benefits, a future gift to us will cost you even less.

We Can Help

Contact the Office of Development at (800) 449-1776 or giftplanning@dar.org with any questions about naming NSDAR beneficiary of your life insurance policy. We are happy to help, without obligation.

eBrochure Request Form

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A charitable bequest is one or two sentences in your will or living trust that leave to National Society Daughters of the American Revolution a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I give to National Society Daughters of the American Revolution, a nonprofit corporation currently located at 1776 D Street NW Washington, DC 20006, or its successor thereto, ______________* [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to NSDAR or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the gift tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and receive an immediate federal income tax charitable deduction. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to NSDAR as a lump sum.

You fund this trust with cash or appreciated assets—and receive an immediate federal income tax charitable deduction. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to NSDAR as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and NSDAR where you agree to make a gift to NSDAR and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.